The legislators of the European Union follow moving towards the end of anonymous cryptocurrency transactions in the territory of the EU, with the aim of ensuring that cryptocurrency transfers have the same level of traceability as cryptocurrency transfers.
The proposed new rules require cryptocurrency-related service providers to retain identity records about the sender and receiver of these types of transfers, so having them make these records, upon request, available to competent authorities in the stuff. These regulations, still in the process of being approved, are part of a package made up of various measures to prevent money laundering and to combat the financing of terrorism.
One of the objectives of this proposal is to get the European Banking Authority (EBA) to launch a public registry of providers of services related to cryptocurrencies that have a high risk of breaking the rules related to the fight against money laundering and the financing of terrorism. They also want a “non-exhaustive” list of non-compliant providers to be created.
The registry and list, which will be public, is intended to help providers identify entities that do not comply with the regulations, service providers related to crypto assets that are considered high risk and, among other things, cryptocurrency wallets related to criminal activities. In addition, transfers to and from non-hosted wallets will also be subject to traceability and reporting standards, and identity information will need to be verified.
Thus, the members of the European Parliament want that “before making crypto assets available to their beneficiaries, providers have to verify that the source of their assets is not subject to restrictive measures, and that there are no risks of money laundering or financing of terrorism’.
The parliamentarians of the Economic and Monetary Affairs Committee (ECON) and those of the Civil Liberties Committee (LIBE) have already approved the text of the regulation, with 93 votes in favor, 14 against and 14 abstentions. The next step that the text will now take to become law is be put to the vote at the April plenary session of the European Parliament.